Laura Arat 16

3. CSR PROCEDURES IN SHIPPING COMPANIES

3.1. Environmental Policies

Environmental policies in the shipping industry are based on several standards and
certifications. Often the shipping companies have several different certifications
especially regarding environment and safety issues. In this chapter most used and most
well known environmental standards and certifications are briefly described.

The International Organization for Standardizations ISO 14000 standard series is

probably the most well known environmental standard for companies. The purposes of
ISO 14000 series is to help the companies to reduce their processes and productions
impact on the environment. The ISO 14001:2004 and ISO 14004:2004 describe an
environmental management system and its requirements and guidelines. The ISO 14000
standards were created after United Nations conference on environment and
development in Rio de Janeiro in 1992. The first versions of the standards were made in
1993 to support sustainable development. (ISO 2009).

The IMO has several conventions regarding environmental protection of the seas. In
1973 the International Convention for the prevention of marine pollution (MARPOL)
from ships was established for the first time and for the second time in 1978. The
MARPOL convention includes all kind of pollution from ships: oil, noxious liquid
substances carried in bulk, harmful substances carried in containers, sewage, garbage,
and the prevention of air pollution. MARPOL is one of the IMOs standards and IMO
actively recommends its usage for the shipping companies all over the world. (IMO
MARPOL 1.8.2011). The International convention for the control of harmful anti-
fouling systems on ships (IAFS) was established in 2001. Purpose of this convention is
to prohibit the use of harmful substances in anti-fouling paints used on ships and
establish a mechanism to prevent the future use of other harmful substances. (Focus on
IMO 2002). IMO has also Marine Environment Protection Committee, which develops
new solutions to ensure protection of marine environment. (IMO MEPC 1.8.2011).

There are lots of environment related certificates and conventions and they cover widely
all aspects of shipping industry. Since these certificates are used worldwide and their
standardization is comprehensive, increasing number of shipping companies will
include them as a part of their environmental management.

3.2. Social Policies

There are several instances on international and national level, which are working with
social policies of shipping industry. Social policies usually concern workers rights,
ethical business and social awareness of the company. Social policies and human
resources are often very important part of the companys CSR policy and following
those policies companies may act as good corporate citizens. (Urminsky 2001).
17 Corporate social responsibility

The International Labour Organisation main purpose is to promote social justice and
internationally recognized human and labor rights, pursuing its founding mission that
labor peace belongs to all. ILO also focuses on the welfare of workers in different
sectors and working environments. For shipping industry and for sea fearers, ILO has
developed almost 50 different conventions and recommendations. These
recommendations are often referred to as theInternational Seafarers Code (DNV
2004).

3.3. CSR and Safety regulations

There are several national and international regulations for maritime safety. The most
well known and most used of them is the International Maritime Organizations
International Safety Management Code (ISM Code), which is part of the international
convention for the safety of life at sea (SOLAS). The IMO issued ISM Code in order to
guarantee the safe operation of vessels and also to prevent pollution of marine
environment. The ISM Code system was founded in 1987 from the resolution
A.596(15), in which IMOs Assembly requested that Maritime Safety Committee
urgently had to develop recommendations for the management of Ro-Ro passenger
vessels to guarantee their safe operation. In October 1989 resolution A.647(16), IMO
guidelines for the management of the safe operations of ships and of pollution
prevention was developed. These following resolutions created the basics of the present
day ISM Code. However it was still a guideline. In November 1993, the guidelines were
replaced by the resolution A.741(18), which is also the current ISM Code. The code was
reinforced in December 2000 and the ISM Code came into effect worldwide in several
phases between 1998-2002. (IMO 2005).

Since IMOs ISM Code is not anymore just a guideline for safe shipping, but they are
ratified by several governments, it is no longer actually a CSR procedure, since it is not
based on voluntarism. However, shipping industry is more regulated industry than the
other industries, so IMO and ILO standards and regulations already set a certain level of
responsible business practices to shipping industry. Although it does not cover all the
values and notions that CSR seeks to achieve (DNV 2004).